What awaits Bitcoin and Altcoins in 2022?

One of the most important issues for the entire crypto and blockchain industry is regulations. 2021 was full of news in this area, and one of the most discussed topics was the unprecedented experiment in El Salvador, which was the first country to grant legal currency status to Bitcoin (BTC). Another hot topic was the United States Securities and Exchange Commission (SEC) approval of the first Bitcoin exchange-traded fund (ETF), which has been anticipated for eight years and hailed as a milestone in crypto history. Opinions of various experts from the crypto and blockchain industry on the subject cryptocoin.com compiled for our readers.

2022 expectations of experts on Bitcoin and altcoins

Alan Konevsky from PrimeBlock

China has had this love-hate relationship with Bitcoin since it took the scene in 2009. The domestic political considerations that led to a policy shift this year and pushed Chinese stock markets and mining off the table, won’t. change in 2022. I don’t think we’re going back to the love part of the cycle. These changes in the competitive dynamic will continue to benefit the United States and other regions.

We will see increased regulation and increased political dialogue touching crypto. The hope is that those coming out of Congress and regulators will be designed in partnership with the industry and be part of a thoughtful dialogue recognizing that crypto is different from traditional finance and securities regulation.

Ankitt Gaur of EasyFi Network

DeFi’s unprecedented growth and technological innovations in recent years have baffled global financial markets and, I think, regulators who are still trying to understand the whole situation. This is probably why cryptocurrencies as an asset class have been overlooked and regulation has been completely absent for over a decade. But now, as DeFi is slowly making its way into the mainstream, controversy over regulation is emerging. Coinbase’s recent discussion with the SEC is a clear indication that regulators are finally considering DeFi. Many countries may also clarify their stances on cryptocurrencies by 2022.

Founder and CEO of Ballet Ballet Bobby Lee

The most significant development in cryptocurrency regulation this year was El Salvador’s adoption of Bitcoin as legal currency. This met and exceeded my prediction five years ago, in December 2016, that a small country’s central bank would add Bitcoin to its foreign exchange reserves. Although El Salvador is a small country, the effects of this change will be profound. The Federal Reserve, the IMF and the Bank of England have all expressed ‘concern’ over El Salvador’s declaration of financial independence. Their concerns are not well-intentioned. It is based on fears that if a country thrives because of Bitcoin, it will trigger a gradual global exit from the debt-based dollar system.

The US won’t follow El Salvador’s example of making Bitcoin legal, but that doesn’t hinder Bitcoin’s success. US regulators and tax collectors have correctly decided to treat Bitcoin not as a currency or security, but as an asset similar to gold. The fiat currency is backed by debt and securities are backed by promises of future earnings. Bitcoin, on the other hand, is backed by nothing but its proven utility as a permissionless, immutable, inflation-proof ledger. Therefore, I expect regulators to focus on generating more tax revenue from Bitcoin holders rather than banning it outright.

Dave Perrill of Compute North

The sector demonstrated its strength and organizational ability. With its crypto-related activity as part of the US legislature’s infrastructure bill, the industry was able to unite and deliver the message: Cryptocurrency and Blockchain will endure. While its proponents favor regulation to clarify the market and encourage adoption, this needs to be thoughtful and encourage innovation, not restrict it. In 2022, we expect organizations like the Digital Chamber of Commerce and the Bitcoin Mining Council, as well as regional groups like the Texas Blockchain Council to become more active in advocating for policies and writing policies with leaders of the Congressional Blockchain Group.

Hatu Sheikh from DAO Maker

2021 has been a starting year for crypto and DeFi as regulators haven’t clarified their stance on the industry. This prevented its individual population from getting involved, creating a huge opportunity cost for the industry. However, the future looks brighter as El Salvador adopts Bitcoin as legal currency and more countries adopt crypto.

Other than that, in 2022, I expect more acceptance on the regulatory front as crypto aims to revolutionize the financial system worldwide with DeFi. Crypto forensics is on the rise and I expect it to be adopted by governments to protect their citizens. Regulations are required for crypto in 2022, but restrictions are not.

Jason Allegrante from Fireblocks

The year 2022 will be turbulent, with regulators sending confusing signals around the world and a series of high-profile enforcement actions, particularly in the US. As we move from the current phase of trying to fit cryptocurrencies into existing asset categories to the future phase of adopting regulatory frameworks that treat digital assets as digital assets, we will see growing agreement around cryptocurrency regulation. In terms of regulation, Europe will take the lead, followed by the United States. Institutional adoption will be bolstered by regulatory clarity and even signals of future clarity.

Lisa N. Edwards of Getting Started In Crypto

Most exchanges I have traded have asked me to complete KYC to continue trading on their platform. A few exchanges have taken this too far by reducing accounts to one per person, which was insane in reality. In traditional banking you can have multiple accounts in one bank, so I think several bridges have to be crossed to meet in the middle. AML can still be tightened up, but we still have a long way to go. And as with traditional cash, there will always be a way around it. Blockchain is tightening up the ability to track money, but new ways are emerging every day to hide those tracks.

Nick du Cros from CoinShares

I expect approaches from regulators to triple in 2022. First, there will be builders that produce bespoke arrangements for digital assets. Second, a group of regulators, panicked by financial stability concerns, will feel the need for urgent action! Their default approach would be to simply right click and copy the banking edits. Third, there will be a handful of regulators who want to impose significant restrictions on digital assets or ban them altogether. It is my hope that 2022 will be for the builders and seen as the year that international regulatory frameworks for digital assets really kick off.

Paolo Ardoino from Bitfinex

Regulators will continue to look at how to enforce appropriate rules and regulations for blockchain-based technologies. I encourage the industry to work proactively with regulators to help them achieve this goal.

Roger Ver from Bitcoin.com

I look forward to the day when government regulators must find honest jobs in the private sector and their salaries are no longer taken from others by threats of violence.

Simon Peters of eToro

eToro fully supports regulatory measures designed to protect and educate investors and end users. We hope that any implemented guidelines will balance the need to protect individual investors with a desire to support their participation in crypto markets. We hope that increased regulation will help facilitate greater use of a technology that not only brings real benefits to the financial services industry, but also facilitates greater financial inclusion globally.

Yacht Siu of Animoca Brands

The regulation will begin to be defined further in 2022, but exactly how is not yet clear. The turning point of 2021 was probably the significant increase in public awareness of Blockchain.

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